A significant tightening in the number of slaughter-fit lambs coming forward in direct factory sales and entered in mart sales is inserting much more life into the trade since the start of the week.

Factories are being forced to release their grip on price to try to encourage higher numbers forward. However, this is occurring at the higher end of the market and creating a two-tiered pricing system.

Regular sellers and those handling large numbers are securing 5c/kg to 10c/kg higher, with reports of €5.35/kg to €5.40/kg being paid much more frequently on Wednesday.

There are also reports of these prices being offered along with transport costs being part or fully covered.

The prices paid by agents in mart sales would also require at least this price and in cases 5c/kg to 10c/kg higher to have any chance of breaking even.

This price movement is in grave contrast to quotes, which, with the exception of Kildare Chilling, remain unchanged. Its increase in base quote of 10c/kg to €5.20/kg plus a 10c/kg quality assurance (QA) opens up a gap of 25c/kg and 30c/kg to the other export-orientated factories.

Reports suggest some farmers struggling to negotiate with factories and being offered quotes of €5.10/kg to €5.15/kg are delaying moving lambs or looking at the mart trade as an alternative option.

IFA national sheep committee chair Sean Dennehy said: “Strong competition between factories for the tight supplies of finished lambs has pushed prices paid this week on by 5c to 10c/kg.

“Lambs are making €5.30/kg to €5.40/kg, with deals to €5.50/kg available for larger lots in particular.

The mart trade is outperforming factory prices in cases and providing a real alternative outlet for farmers,” he said.

There has been little change on the market front, with a tightness in supply driving demand as opposed to any major movement in price.

The one area where there has been movement is in the British Standard Quality Quotation (SQQ) price. Prices reported by the AHDB on Monday and Tuesday were 10p/kg higher than the previous week and recorded at £2.15/kg on Tuesday.

This is inserting upwards pressure on the British factory trade, where quotes currently range from £4.30/kg to £4.60/kg, with a massive variation between regions.

The trade in Northern Ireland has also firmed. Quotes have increased 5p/kg to £4.45/kg (€4.94/kg), but, similar to the case in southern plants, regular sellers are securing at least 10p/kg above quoted prices to close deals.

The number of sheep imported south for direct slaughter reduced last week to 6,403 from 8,450 in the previous week, with one day less of processing interrupting normal trading. Agents purchasing on behalf of southern plants have been more active this week in sourcing lambs.